Helpful Tips To Maximize Profits When Buying Wholesale Pallets of Customer Returns
Have you ever bought something and then returned it for one reason or another? Perhaps you bought the wrong item by mistake, or you bought the wrong size. Perhaps you bought a movie that you didn’t remember already purchasing.
Nearly everyone has returned something to one of the big box stores, and smaller retailers, at one point or another. Have you ever wondered just what happened to those items? Many times, they will end up on wholesale pallets sold through liquidation auctions and wholesale suppliers.
As a business owner, you can profit from these customer returns, and it is easier than you might imagine to save money and increase your profits.
Look for Wholesale Suppliers and Liquidation Auctions
These are the best ways to buy inventory for your business when you are on a budget or just getting started in the field of reselling. Many companies today are offering this type of service, but not all of them are worth your time or your money. You want to be sure that the companies offer the type of products that you want to sell through your business, for starters.
Check out the various sites and see what types of pallets of wholesale customer returns they offer. If they offer the right types of goods, they could be an option. However, you will want to do more research to make sure you are not overspending on the goods. We will discuss this later.
When you find some companies that interest you, it is a good idea to make sure they are legitimate and that they have a good reputation. A good way to check out the veracity of a company is to visit the Better Business Bureau. When you visit their site, this is the first thing that will greet you.
Fill in the information, and you can learn more about the business, including whether there have been any reviews or complaints about the company. Doing this will give you some peace of mind when you are buying the wholesale pallets of those customer returns.
What Type of Profit Can the Pallets Provide?
When you are examining the manifests that let you know what is on the pallets of customer returns, pay attention to the types of items, the number of each item, and the brand. You can then check through other sites, such as Shopify, Amazon, and eBay to determine the typical asking price for these items that have been returned and are being resold.
It is important that you look for the value of returned items for sale rather than brand new items, as you will not likely be getting the normal retail price when you sell them.
One of the good things about buying a pallet of wholesale items is the price. Most of the time, you will find that the prices are quite low, and there is a good chance to make a nice profit on the items that you are selling. Just make sure that the deal really is as good as it seems. If the items are brands that people have never heard of, they can still sell. It might just take longer, and they might not make as much money for you.
Consider Different Pricing Strategies
When you are reselling customer return items, you tend to have fewer strategies available to you than if you were selling typical retail items. However, you do still have some options available. Competitive pricing is often used in this field. This means that you look at whether the competition is selling the same types of items and then you price the items you sell the same, or slightly lower.
Keystone pricing is another option that has the potential to work for a reseller who is buying wholesale. This means that you would double the cost you paid for the merchandise and sell it for that amount. This is not often used in retail stores today, as customers are not willing to pay high prices. However, since you bought the items at a steep discount, you could double the price, or go even higher, and still be able to keep it low enough to appeal to customers.
For example, if you bought a pallet with headphones on them that would typically retail for $100, but you only paid $25 per pair, you could easily charge $50 or $60, and the customers would still be getting a great deal.
You could also combine psychological pricing with these methods. To do this, you could use odd pricing, which would have the price end in a five, a seven, or a nine. You could also use round numbers for your pricing. These are prices that people often see as fair on a subconscious level.
Be Disciplined When Bidding
If you are going to be buying your customer returns through an auction, it can be a great way to save some money on the goods that you need. However, you need to remember that you will be bidding against other people who have the same idea you do with the wholesale pallets full of customer returns. Research the pallet to know how much it is worth to you and how much you could make from it. Come up with a number that is your top amount for bidding and buying the pallet.
If someone else is bidding against you and the price goes higher, it is in your best interest to back out. Overspending on a pallet means you are diminishing the amount of profit that you could make from it. You need to stick to that budget to be successful in the field.
It takes some research to know what to buy and how much to pay for it, but you will find that it is well worth the effort. Knowing that you are getting good deals and that you can make a greater profit with the goods you are buying on wholesale products is a good feeling.
Jordan currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Jordan is here to help you grow your business.
View Jordan’s Bio on YouTube.